How to sign up for Apple's iPhone Upgrade Program and get a new discounted iPhone every year

• Apple's iPhone Upgrade Program lets you easily upgrade your iPhone whenever a new model is released.
• The iPhone Upgrade Program loans you an iPhone, which you'll then make monthly payments on - once you've made 12 payments, you can upgrade it.
• You can sign up for the iPhone Upgrade Program with most major carriers, and AppleCare+ coverage is included.

If there's one thing that Apple is good at, it's releasing new models of the iPhone. We've gotten a new iPhone every year for more than a decade, and every model is a best-seller.

But even with trade-ins, buying a new iPhone every year is an expensive proposition. That's where Apple's iPhone Upgrade Program comes in.

The iPhone Upgrade Program is a subscription service that lets you upgrade your iPhone every year for less money. There are some strings attached, but if it's vital that you always have the newest iPhone, this might be the program for you.

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Here's everything to know about the iPhone Upgrade Program.

How the iPhone Upgrade Program works

The iPhone Upgrade Program is a service that helps users upgrade their iPhone whenever a new model is released.

When you sign up, you choose what kind of iPhone you want. Then you'll have to go through a credit check, like you would when taking out a mortgage or applying for a credit card. If you're approved, Apple takes out a zero percent loan in your name with Citizens One Bank and gives you the iPhone you chose.

Once you receive the iPhone, you'll start paying a monthly bill for it. The bill amount depends on what iPhone you picked and how much storage space it has, but it ranges from about $40 to $70 per month.

After paying for 12 months, you can ask for an upgrade. Contact Apple, and they'll check your credit again. If you're still eligible, they'll send you a new iPhone, cancel the old loan, and sign you up for a new loan. You'll have to send back the old iPhone once you receive a new one.

Quick tip: If you haven't made 12 monthly payments but still want to upgrade, you can pay the amount needed to make up 12 payments all at once when requesting the upgrade.

Alternatively, you can pay off the entire loan without requesting an upgrade. Once paid, the iPhone is yours to keep forever, and you'll be removed from the iPhone Upgrade Program. You can rejoin at any time.

If that works for you, here's how to sign up.

How to sign up for the iPhone Upgrade Program

To sign up, you'll need to be a customer with AT&T, Sprint, Verizon, or T-Mobile. You'll also need to provide your Social Security number, date of birth, and annual income for the credit check, along with your debit or credit card information. Prepaid cards aren't accepted.

1. Head to the iPhone Upgrade Program page and click Join Now.

2. Select which iPhone model you want, and then on the customization page, pick its size, color, amount of storage space, and your carrier.

3. When asked how you'd like to pay, select Pay monthly. In the options that appear, pick Apple iPhone Upgrade Program and then I'd like to enroll.

4. Select what level of AppleCare+ coverage you want, and then Continue.

5. Enter your current phone number and the last four digits of your Social Security number. This is so your carrier can see if you still owe them any money for your current phone.

6. Apple will text you a passcode to enter on the site. Enter it, and then log into your Apple ID account.

7. The checkout page will appear. Choose whether you want the iPhone delivered to you, or you want to pick it up from a local Apple Store.

Important: You'll have to pay taxes on the entire iPhone in the first payment, so expect the first bill to be more expensive than the rest.

8. Apply for the loan by filling out your personal details, and provide your debit or credit card information.

9. Click Continue to Review, and accept the terms of your agreement.

Once you accept, Apple and Citizens One will check your credit to see if you qualify for the loan. If you do, you'll get an email confirmation, and you're all set to go. Either wait for your iPhone to arrive, or pick it up at the scheduled time.

Quick tip: If you choose to pick up the iPhone at a store but don't pick it up within two weeks, your loan will be cancelled without penalty. Any hit you received to your credit from the preapproval credit check will remain, though.